Labor Department Revises OSHA Penalty Guidelines to Support Small Businesses
New policy expands penalty reductions for small employers and incentivizes quick hazard abatement to improve workplace safety.
- By Stasia DeMarco
- Jul 14, 2025
The U.S. Department of Labor has issued revised guidelines in OSHA’s Field Operations Manual that reduce penalties for small businesses and reward employers who take swift action to correct workplace hazards.
The changes aim to strike a balance between regulatory enforcement and the realities faced by small employers with limited resources. “All employers should be offered the opportunity to comply with regulations that help maintain a safe working environment,” said Deputy Secretary of Labor Keith Sonderling. “Small employers who are working in good faith to comply with complex federal laws should not face the same penalties as large employers with abundant resources.”
Under the updated guidance, penalty reductions previously reserved for businesses with 10 or fewer employees will now apply to employers with up to 25 workers. For example, a 70% penalty reduction — once exclusive to very small businesses — will now extend to this expanded group.
The revisions also include a new 15% penalty reduction for employers who immediately address or correct safety hazards following an OSHA citation. In addition, employers without a history of serious, willful, repeat, or failure-to-abate violations — including those who have never been inspected or have clean inspection records over the past five years — will qualify for a 20% penalty reduction.
The policy change is intended to promote timely hazard abatement and provide small businesses with greater flexibility to invest in compliance. The Department clarified that penalties issued before July 14, 2025, will follow previous guidelines, while open investigations without finalized penalties will fall under the new policy.
OSHA will continue to exercise discretion and may withhold penalty reductions if doing so does not align with the objectives of the Occupational Safety and Health Act.
About the Author
Stasia DeMarco is the Content Editor for OH&S.